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Nastasia [14]
3 years ago
12

Steinway produces concert grand pianos, often using the custom materials and designs desired by a specific customer. The average

price of these pianos runs about $50,000 depending on the exact piano. What type of pricing does Steinway most likely use for these pianos?
Business
1 answer:
vovangra [49]3 years ago
6 0

Answer:

Cost-Plus

Explanation:

Cost plus pricing is a system of determining the selling price of an item by adding a determined amount called mark-up to the total cost of producing the item.Its purpose is to ensure that cost are fully recovered and profit are also made.

In a less competitive environment like Steinway's own , where pianos are being produced to the specification of waiting customers , this  gives a good opportunity for cost plus marketing as threats from competitors are minimal or even nil.

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A firm has a profit margin of 6% and an equity multiplier of 1.5. Its sales are $230 million, and it has total assets of $115 mi
Ket [755]

Answer:

18%

Explanation:

In this question, we use the DuPont Analysis which is shown below:

ROE = Profit margin × Total assets turnover × Equity multiplier

ROE = 6% × 2 × 1.5

        = 18%

The total assets turnover is shown below:

= Sales ÷ total assets

= $230 million ÷ $115 million

= 2

Simply we apply the ROE formula in which the profit margin is multiplied with the total assets turnover and the equity multiplier

7 0
3 years ago
Pharoah Company was started on May 1. A summary of May transactions is presented as follows. 1. Stockholders invested $24,500 ca
hodyreva [135]

Answer:

1. Stockholders invested $24,500 cash in the business in exchange for common stock.

Dr Cash 24,500

    Cr Common stock 24,500

2. Purchased equipment for $4,500 cash.

Dr Equipment 4,500

    Cr Cash 4,500

3. Paid $200 cash for May office rent.

Dr Rent expense 200

    Cr Cash 200

4. Paid $600 cash for supplies.

Dr Supplies 600

    Cr Cash 600

5. Incurred $350 of advertising costs in the Beacon News on account.

Dr Advertising expense 350

    Cr Accounts payable 350

6. Received $4,900 in cash from customers for repair service.

Dr Cash 4,900

    Cr Service revenue 4,900

7. Declared and paid a $1,000 cash dividend.

Dr Dividends 1,000

    Cr Cash 1,000

6 0
3 years ago
A firm expects to sell 25,500 units of its product at $11. 50 per unit and to incur variable costs per unit of $6. 50. total fix
Afina-wow [57]

A firm expects to sell 25,500 units of its product at $11. 50 per unit and to incur variable costs per unit of $6. 50. total fixed costs are $75,000. the total contribution margin is $127500.

The contribution margin is computed as the promoting rate per unit, minus the variable fee in keeping with the unit. additionally referred to as greenback contribution in keeping with the unit, the measure shows how a specific product contributes to the general profit of the organization.

The closer a contribution margin percentage, or ratio, is to 100%, the better. The better the ratio, the more money is available to cowl the commercial enterprise's overhead expenses or fixed prices. However, it is more likely that the contribution margin ratio is well below one hundred%, and possibly beneath 50%.

Contribution margin, or greenback contribution per unit, is the selling rate per unit minus the variable price in step with the unit. "Contribution" represents the part of sales revenue that is not consumed through variable expenses and so contributes to the coverage of constant fees.

Learn more about contribution margin here brainly.com/question/24039258

#SPJ4

7 0
1 year ago
How does gross domestic product (GDP) differ from gross national income (GNI)?
bazaltina [42]
The correct answer for the question that is being presented above is this one: "C.GDP is used by NASA to measure eroding coastlines, while GNI is used by the FBI to monitor criminal activity across borders." The gross domestic product (GDP) differ from gross national income (GNI) is that <span>C.GDP is used by NASA to measure eroding coastlines, while GNI is used by the FBI to monitor criminal activity across borders. </span>
6 0
2 years ago
Read 2 more answers
In 2014, Wire Corp. had sales of $740,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses we
victus00 [196]

Answer:

The company's operating cash flow is $100,000

Explanation:

The computation of the operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense

where,  

EBIT = Sales - cost of good sold - depreciation expense  - administrative and selling expenses

= $740,000 -  $550,000 - $95,000 - $90,000

= $5,000

The income tax expense equals to

= (Sales - cost of good sold - depreciation expense  - administrative and selling expenses - interest rate) × tax rate

= ( $740,000 -  $550,000 - $95,000 - $90,000 - $94,000) × 35%

The amount comes in negative so we cannot compute the tax expense as corporation is suffering from the net loss

And all other items would remain same

Now put these values to the above formula  

So, the value would equal to

= $5,000 + $95,000 - $0

= $100,000

5 0
3 years ago
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